At the start of any building project, owners are typically faced with a decision with regards to the type of contract they are going to put in place. Usually, a fixed price contract will be the chosen route, however, for those that are planning on a particularly lavish spend, or require substantial works to the existing structure in order to restore it to a habitable state, then cost plus contracts may also be on the table.
Here at Boutique Lawyers, we appreciate that the final decision in this regard always lies with the owner, however, what is certain is that it is essential for anyone undertaking building or construction work to undertake the advice of a law firm that will ensure that the contract signed is fit for purpose and provides all of the assurances needed to safeguard the owner, and consequently the builder, from potential disputes.
Since 2012 our boutique law firm has been carefully selecting and working with clients that we believe we can achieve a positive outcome for. We are not interested in taking any and all comers just for the sake of financial gains and this stems from our belief that our industry can do better and deliver a much more satisfactory level of service. As such, our specific focus on building and construction law makes us the go-to team for those that wish to bulletproof their cost plus building contract or step in to help reconcile things should a dispute arise.
Cost Plus Contracts
Why Cost-Plus Contracts Aren’t Necessarily A Bad Thing
With the fixed price contract, you know where you stand, as does your builder, and with the stakes set it is much more likely that the job will be completed on time and under budget. The risk is low if you are an owner, and for builders, it promotes the enforcement of strict schedules and timely work.
However, once the estimated price goes above $500,000, then the possibility of choosing a cost plus contract for your construction project comes into effect. What this contract essentially means is that the owner will pay the applicable cost of actual works completed and costs incurred plus an additional fee or margin which accounts for profit.
These contracts are entered into by choice by the owner and cannot be pushed by the builder, so it affords them the luxury of choosing a potential alternative that may end up saving them money when compared to a fixed price contract. What’s more, they necessitate strict administration with regards to the build, due to the fact that all expenses must be accounted for.
Highly Effective Team Delivering Exceptional Results
Here at Boutique Lawyers, cost plus contract forms are something we can assist you with if you are currently negotiating with your builder. Our small but highly effective team have 98% success rate for our clients and as such we encourage those that are either in the process of planning or currently involved in a dispute with regards to the contract that was signed to get in touch.
Avail of our free 30-minute consultation today to discuss your project or issue with our team and we assure you that if we are compelled to commit to the task, and if you are interested in engaging our services, we will deliver a quality service that meets the highest standards and will put you and your goals at the centre of everything that we do.
Boutique Lawyers is a top law firm in Melbourne that specialises in building and construction law. Our construction & property lawyers are well versed in handling disputes, permits and contracts. Browse our website further or contact us to learn more.